What is an Offer? | What is Proposal?

The Proposal or Offer

The words ‘ proposal’ and ‘offer’ are synonymous and are used interchangeably. Section 2 (a) of the Indian contract act defines a ‘proposal’ as, “ when one person signifies to another his willingness to do or to abstain form doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal”. This definition reveals the following three essentials of a ‘proposal’.

(i) One person signifies to another; it must be an expression of the willingness to do or to abstain from doing something. According to section 3 to signify means that the proposal must be communicated to the other party.

(ii) The expression of willingness to do or to abstain form doing some thing must be to another person. There can be no ‘proposal’ by a person to himself

(iii) The expression of willingness to do or to abstain from doing some-thing must be made with a view to obtaining the assent of the other person to such act or abstinence. Thus a casual enquiry “ do you intend to sell your motorcycle?” is not a ‘proposal’. Similarly, a mere statement of intention” I may sell my motorcycle if I can get Rs. 14,000 for it” is not a ‘proposal’. But if M says to N, “ will you buy my motorcycle fro Rs. 14,000,” or “ I am willing to sell my motorcycle to you for Rs. 14,000”, we have a ‘proposal’ as it has been made with the object of obtaining the assent of N.

The person making the ‘proposal’ or ‘offer’ is called the ‘promisor’ or ‘ offeror’, the person to whom the offer is made is called the ‘offeree’, and the person accepting the offer is called the ‘promisee’ or ‘acceptor’.